Sales Slide Despite Stepped-Up Discounting

August 2007

0shares

On a combined basis, the average new car incentive, including cash rebates and concessional financing, cost manufacturers $2,524 in July, up 4 percent from a year earlier, according to industry tracking service Edmunds.com.

The Detroit-based manufacturers led the pack on incentives, with Chrysler at $4,820, followed by GM at $3,130 and Ford at $2,984 on average, Edmunds said.

But major Japanese manufacturers also discounted more aggressively in July.

Toyota increased its incentive spending almost 48 percent year-on-year to $1,492 per vehicle in July, while Honda's spending jumped 28 percent to $1,146, according to Edmunds.

The pickup truck segment, which accounts for about 13 percent of overall U.S. auto sales, has become the most fiercely contested. In July, GM, Ford, Toyota and Chrysler were all offering interest-free financing and cash rebates to bolster truck sales.